“There's Really No Limit To What We Can Do,” Says US Fed Chairman Jerome Powell

In a recent interview with CBS News, the US Federal Reserve Chairman Jerome Powell said the “unprecedented” support from Congress may not be enough and both the Fed and Congress have to do more.

Last week, we reported that another $3 trillion coronavirus relief package has been passed by the House Democrats.

Coronavirus continues to affect the US as so far, there have been more than 1.5 million COVID-19 cases in the US and 90,980 people have lost their lives to it. Also, this past week, the Labor Department reported a total of over 35 million Americans had lost their jobs so far.

We're not out of ammunition by a long shot.

Fed not out of ammunition, Not by a long shot

Powell also warned of the “risk of longer-run damage to the economy” — the data for the quarter ending June will be “very, very bad,” he said. He, however, maintained that the road to recovery can happen “relatively soon”,

“It may take a while (…) It could stretch through the end of next year. We really don't know.” But “the economy will take some time to gather momentum.”

But the good news is they have the tools to limit the effects of the coronavirus by providing support to households and businesses. He said,

“There is a lot more we can do. We're not out of ammunition by a long shot. No, there's, there's really no limit to what we can do with these lending programs that we have.”

Since the coronavirus hit the markets, the Fed has been flooding the system with money. According to Powell, “As a central bank, we have the ability to create money digitally.”

Although by law, the Fed can only lend money that must be paid back, during the ongoing crisis they have been simply firing up their money printer and “increasing” the money supply. Macro investor Jones of Tudor Investment Corp called this,

“an unprecedented expansion of every form of money, unlike anything the developed world has ever seen.”

As for the mounting debt, it’s not the time to “prioritize that concern.”

Bitcoin is the perfect hedge against Fed’s printing

In complete contrast to fiat currency, that is either getting eroded by the “unbeatable dollar” or the central banks around the world continue to print more. Jean-Marie Mognetti, CEO of CoinShares said,

“Bitcoin, a digital currency whose supply is programmatically defined to reduce until it reaches its maximum supply, would seem to be the perfect hedge for any institutional investor portfolio.”

And that’s the ongoing crisis is the time for bitcoin to shine. Already, the halving last week cut down miners’ reward into half. An event that occurs every four years periodically slows down the pace at which new bitcoins are created.

And since the central banks around the world started dispensing their enormous stimulus measures, the world's leading cryptocurrency has been only gaining more support as an inflation hedge.

Bitcoin has also been one of the best-performing assets this year, up 31.58% YTD while the S&P 500 Index dropped 11%. CEO of Panxora Gavin Smith said,

“While traditional markets grow uncertain, we can expect more investors to use Bitcoin as an inflation hedge and to protect their assets against currency devaluation.”

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AnTy
AnTy
AnTy has been involved in the crypto space full-time for over two years now. Before her blockchain beginnings, she worked with the NGO, Doctor Without Borders as a fundraiser and since then exploring, reading, and creating for different industry segments.

[Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

[Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer

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